Young People and Work

Baroness Stedman-Scott Excerpts

Thursday 4th June 2026 Lords Chamber

Asked by

[Baroness Stedman-Scott]

To ask His Majesty’s Government what assessment they have made of Alan Milburn's report Young people and work: interim report, published on 28 May; and what steps they intend to take to address the rising number of young people who are not in education, employment or training.

[Baroness Stedman-Scott (Con)]

My Lords, I beg leave to ask the Question standing in my name in the Order Paper. I understand that there is a debate going on about where I should be sitting. If I have got it wrong, I am really sorry.

[The Minister of State, Department for Education and Department for Work and Pensions (Baroness Smith of Malvern) (Lab)]

My Lords, this Government’s priority is to ensure that young people have the best opportunities to get on in life. That is why we commissioned Alan Milburn to identify the underlying drivers of the NEET participation crisis. His interim report shows that this is a systemic challenge across departments and society. We are already taking action across education, health, youth services and welfare, and we will build further on this as we consider full recommendations from Alan Milburn in the autumn.

[Baroness Stedman-Scott (Con)]

I thank the Minister for her Answer, which is encouraging. We on these Benches welcome the Milburn report. It is a serious, research-driven diagnosis of a problem that has accelerated since the pandemic. The NEET problem is complex and cuts across almost every government department—and it is more than welfare policy, as the Minister has already said. It is about interaction with education, skills, health and the labour market, economic growth and young people’s ability to transition from school to the labour market.

We all agree that economic growth matters and business confidence matters, and, most importantly, we need employers who are willing and able to afford to hire young people in the current climate. The latter is something we can address right now. Why will the Government not revoke the damaging policies—such as the increases in national insurance, increasing employment burdens and rising labour costs—that are preventing employers employing young people? That will reinvigorate the number of entry-level jobs, get young people into work and keep them there.

[Baroness Smith of Malvern (Lab)]

I was with the noble Baroness for the first part of her question. She is right: the Milburn report does identify a wide-ranging problem and a need for systemic and country-wide action. I am afraid that she may not have read it as carefully as she should have in relation to the last part of her question. Alan Milburn is very clear in paragraph 266 that

“it is worth remembering that those under 21 remain exempt from employer NICs and, as the review has already highlighted, the increase in youth inactivity long precedes any recent changes”

to NEETs. Employers do not pay national insurance contributions for under-21s, or for apprentices under 25. If national insurance contributions were really responsible for the rise in NEETs, why did the number increase by 250,000 before the general election and before any changes to employer national insurance were made?